Revenue issues guidance documents on the operation of the temporary COVID-19 wage subsidy scheme

The Temporary Wage Subsidy Scheme will be available to employers who keep employees on the payroll throughout the COVID-19 pandemic, meaning employers can retain links with employees for when business picks up after the crisis. Additionally, the operation of the scheme will reduce the burden on the Department of Employment Affairs and Social Protection (DEASP) which is dealing with the other Covid-19 related payments.

Revenue have issued guidance documents on the operation of the scheme..

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Guidance on Operation of COVID-19 Temporary Wage Subsidy Scheme

COVID-19 Temporary Wage Subsidy Scheme - Guidance on Employer Eligibility and Supporting Proofs

Employers are encouraged to facilitate employees by operating the scheme, by retaining employees on their books and by making best efforts to maintain a significant, or 100% income, for the period of the scheme.

Key Features of the scheme

• Replaces the previous COVID-19 Refund Scheme.
• Initially, and from this Thursday (26 March 2020), the subsidy scheme will refund employers up to a maximum of €410 per each qualifying employee.
• However, employers should pay no more than the normal weekly net pay of the employee.
• The subsidy scheme applies both to employers who top up employees’ wages and those that aren’t in a position to do so.
• Employers make this special support payment to their employees through their normal payroll process.
• Employers will then be reimbursed for amounts paid to employees and notified to Revenue via the payroll process.
• The reimbursement will, in general, be made within two working days after receipt of the payroll submission.
• In April, the scheme will move to a subsidy payment based on 70% of the normal net weekly pay for each employee up to a maximum of €410*.
• Income tax and USC will not be applied to the subsidy payment through the payroll.
• Employee PRSI will not apply to the subsidy or any top up payment by the employer.
• Employer’s PRSI will not apply to the subsidy and will be reduced from 11.05% to 0.5% on the top up payment.